Question 1

The nominal rate of interest will be lower than the effective rate of interest when an account compounds monthly.

Accepted Answer

A) True 
 B)False

Question 2

Asset management accounts are offered by most banks and are typically FDIC insured.

Accepted Answer

A) True 
 B)False

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement.
-[Money market deposit accounts | Asset management accounts] are protected by the Securities Investor Protection Corporation.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement.
-With low interest rates,savers have begun investing in [bonds | stocks] where higher yields can be found.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

Low interest rates are helpful in:

Accepted Answer

A)  facilitating a greater supply of money for borrowers. 
B)  reducing the service cost on our national debt. 
C)  encouraging a higher savings rate 
D)  a and b 
E)  None of the above 
A)  facilitating a greater supply of money for borrowers. 
B)  reducing the service cost on our national debt. 
C)  encouraging a higher savings rate 
D)  a and b 
E)  None of the above

Question 6

Low interest rates have increased the supply of credit.

Accepted Answer

A) True 
 B)False

Question 7

Mandy has $2,000,with which she would like to start a savings program.She will add to it regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

Accepted Answer

A)  Series EE U.S.savings bonds 
B)  Money market deposit account 
C)  Certificates of deposit account 
D)  U.S.Treasury bills 
E)  NOW account 
A)  Series EE U.S.savings bonds 
B)  Money market deposit account 
C)  Certificates of deposit account 
D)  U.S.Treasury bills 
E)  NOW account

Question 8

Convenience and improved record keeping are two advantages sited for on-line bill payment.

Accepted Answer

A) True 
 B)False

Question 9

Christina works at a company that offers direct deposit of her paycheck into her personal bank account.This service is called:

Accepted Answer

A)  an ATM service. 
B)  a FDIC service. 
C)  a money market service. 
D)  an EFT service 
E)  an overdraft service. 
A)  an ATM service. 
B)  a FDIC service. 
C)  a money market service. 
D)  an EFT service 
E)  an overdraft service.

Question 10

Internet-only banks typically pay lower interest rates on savings than traditional banks.

Accepted Answer

A) True 
 B)False

Question 11

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by:

Accepted Answer

A)  writing a new check. 
B)  depositing the correct amount of money. 
C)  requesting a stop payment. 
D)  tearing up the check. 
E)  properly endorsing the check. 
A)  writing a new check. 
B)  depositing the correct amount of money. 
C)  requesting a stop payment. 
D)  tearing up the check. 
E)  properly endorsing the check.

Question 12

A savings account is most useful in managing everyday household transactions.

Accepted Answer

A) True 
 B)False

Question 13

There are some limitations on check writing for both MMDAs and MMMFs.

Accepted Answer

A) True 
 B)False

Question 14

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase:

Accepted Answer

A)  cashier's checks. 
B)  certified checks. 
C)  conditional checks. 
D)  traveler's checks. 
E)  guaranteed checks. 
A)  cashier's checks. 
B)  certified checks. 
C)  conditional checks. 
D)  traveler's checks. 
E)  guaranteed checks.

Question 15

Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money? They are not planning to add to this savings account.(Show all work.Round your answer to the nearest dollar.)

Accepted Answer

$9,752
Future value

Question 16

Commercial banks are insured by the:

Accepted Answer

A)  Financial Deposit Insurance Association. 
B)  Federal Depositors Assurance Corporation. 
C)  Federal Deposit Insurance Corporation. 
D)  Financial Deposit Insurance Company. 
E)  Federal Demand Deposit Corporation. 
A)  Financial Deposit Insurance Association. 
B)  Federal Depositors Assurance Corporation. 
C)  Federal Deposit Insurance Corporation. 
D)  Financial Deposit Insurance Company. 
E)  Federal Demand Deposit Corporation.

Question 17

A _____ is an interest-bearing checking account.

Accepted Answer

A)  certificate of deposit 
B)  Treasury bill 
C)  NOW account 
D)  Series EE U.S.savings bond 
E)  regular checking account 
A)  certificate of deposit 
B)  Treasury bill 
C)  NOW account 
D)  Series EE U.S.savings bond 
E)  regular checking account

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement.
-Many people choose a bank based solely on [legal requirements | convenience].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

Whenever you write a check or make a deposit,an entry should be made on your:

Accepted Answer

A)  deposit slip. 
B)  checkbook ledger. 
C)  check. 
D)  ATM account. 
E)  personal check. 
A)  deposit slip. 
B)  checkbook ledger. 
C)  check. 
D)  ATM account. 
E)  personal check.

Question 20

A certified check is written on the bank's account rather than on a customer's account.

Accepted Answer

A) True 
 B)False

The nominal rate of interest will be lower than the effective rate of interest when an account compounds monthly.

Asset management accounts are offered by most banks and are typically FDIC insured.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -With low interest rates,savers have begun investing in [bonds | stocks] where higher yields can be found.

Low interest rates are helpful in:

Low interest rates have increased the supply of credit.

Mandy has $2,000,with which she would like to start a savings program.She will add to it regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

Convenience and improved record keeping are two advantages sited for on-line bill payment.

Christina works at a company that offers direct deposit of her paycheck into her personal bank account.This service is called:

Internet-only banks typically pay lower interest rates on savings than traditional banks.

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by:

A savings account is most useful in managing everyday household transactions.

There are some limitations on check writing for both MMDAs and MMMFs.

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase:

Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money? They are not planning to add to this savings account.(Show all work.Round your answer to the nearest dollar.)

Commercial banks are insured by the:

A _____ is an interest-bearing checking account.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Many people choose a bank based solely on [legal requirements | convenience].

Whenever you write a check or make a deposit,an entry should be made on your:

A certified check is written on the bank's account rather than on a customer's account.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

The nominal rate of interest will be lower than the effective rate of interest when an account compounds monthly.

Asset management accounts are offered by most banks and are typically FDIC insured.

Low interest rates are helpful in:

Low interest rates have increased the supply of credit.

Mandy has $2,000,with which she would like to start a savings program.She will add to it regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

Convenience and improved record keeping are two advantages sited for on-line bill payment.

Christina works at a company that offers direct deposit of her paycheck into her personal bank account.This service is called:

Internet-only banks typically pay lower interest rates on savings than traditional banks.

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by:

A savings account is most useful in managing everyday household transactions.

There are some limitations on check writing for both MMDAs and MMMFs.

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase:

Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money? They are not planning to add to this savings account.(Show all work.Round your answer to the nearest dollar.)

Commercial banks are insured by the:

A _____ is an interest-bearing checking account.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Many people choose a bank based solely on [legal requirements | convenience].

Whenever you write a check or make a deposit,an entry should be made on your:

A certified check is written on the bank's account rather than on a customer's account.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters